HSBC requires some existing investment clients in the mainland to submit a source of funds declaration; failure to submit in a timely manner may result in service termination

According to the Daily Economic News, following the requirement to confirm that the source of funds for new account openings comes from legal overseas channels, some banks in Hong Kong have begun to initiate a source of funds declaration process for certain existing mainland investment clients. HSBC Hong Kong has recently started notifying some existing mainland investment clients, requiring them to submit the "Declaration for Opening/Maintaining Accounts" through the HSBC Hong Kong App by September 12 and to update their contact information.

The declaration includes confirming that the funds for investment activities come from legal sources outside mainland China, and that the bank may disclose personal information at the request of law enforcement or regulatory agencies. The notice also mentioned that if the declaration is not submitted by August 20, investment-related services may be suspended; if it is still not submitted by September 12, investment-related services may be terminated.

An HSBC spokesperson responded that they will follow relevant regulatory requirements when managing investment client relationships, thus inviting relevant mainland Chinese investors to provide self-declarations and confirm that the information provided in their "Know Your Customer" and "Customer Due Diligence" processes is current and valid, which helps to continuously provide uninterrupted services to clients. HSBC emphasized that this latest declaration requirement applies only to investment service clients.